Suzhou Hengmingda Electronic Technology Co., Ltd. 2025 Annual Internal Control Self-Evaluation Report
To all shareholders of Suzhou Hengmingda Electronic Technology Co., Ltd.:
In accordance with the "Basic Norms for Enterprise Internal Control" and its supporting guidelines, as well as other internal control regulatory requirements (collectively referred to as the "Enterprise Internal Control Norms"), and combined with the Company's internal control system and evaluation methods, based on daily supervision and special supervision of internal control, we have evaluated the effectiveness of internal control as of December 31, 2025 (the "Internal Control Evaluation Reporting Date").
I. Important Statement
In accordance with the Enterprise Internal Control Norms, the establishment, sound improvement, and effective implementation of internal control, the evaluation of its effectiveness, and the truthful disclosure of the internal control evaluation report are the responsibilities of the Company's Board of Directors. The Audit Committee of the Board of Directors supervises the establishment and implementation of internal control by the Board of Directors. Management is responsible for organizing and leading the daily operation of the Company's internal control. The Company's Board of Directors, the Audit Committee of the Board of Directors, directors, and senior management guarantee that the content of this report is free from any false records, misleading statements, or material omissions, and assume individual and joint legal liability for the truthfulness, accuracy, and completeness of the report's content.
The objective of the Company's internal control is to provide reasonable assurance that business operations are legal and compliant, assets are secure, financial reports and related information are true and complete, operating efficiency and effectiveness are improved, and development strategies are achieved. Due to the inherent limitations of internal control, it can only provide reasonable assurance for the achievement of these objectives. Furthermore, due to changes in circumstances, internal control may become inappropriate, or the degree of compliance with control policies and procedures may decrease, and there is a certain risk in inferring the effectiveness of future internal control based on the results of the internal control evaluation.
II. Conclusion of Internal Control Evaluation
Based on the identification of material weaknesses in the Company's financial reporting internal control, as of the Internal Control Evaluation Reporting Date, there were no material weaknesses in financial reporting internal control. The Board of Directors believes that the Company has maintained effective financial reporting internal control in all material aspects in accordance with the requirements of the Enterprise Internal Control Norms and relevant regulations.
Based on the identification of material weaknesses in the Company's non-financial reporting internal control, as of the Internal Control Evaluation Reporting Date, the Company found no material weaknesses in non-financial reporting internal control.
No factors have occurred between the Internal Control Evaluation Reporting Date and the issuance date of this Internal Control Evaluation Report that have affected the conclusion of the internal control effectiveness evaluation.
III. Internal Control Evaluation Work
(1) Scope of Internal Control Evaluation
The Company determines the main entities, business operations, and matters included in the scope of evaluation, as well as high-risk areas, based on a risk-oriented approach.
- The main entities included in the evaluation scope are Suzhou Hengmingda Electronic Technology Co., Ltd., Huizhou Hengmingda Electronic Technology Co., Ltd., Hengshicheng (Hong Kong) International Holdings Co., Ltd., Shenzhen Huayangtong Electromechanical Co., Ltd., Dongguan Aita New Material Technology Co., Ltd., Shenzhen Hengmingda Research Institute Co., Ltd., Wengchengda Electronic Technology (Vietnam) Co., Ltd., Huizhou Huayangtong Electromechanical Co., Ltd., Beijing Hengmingda Electronic Technology Co., Ltd., and Shenzhen Hengmingda Management Co., Ltd. The total assets of the entities included in the evaluation scope account for 100.00% of the Company's consolidated financial statement total assets, and the total operating income accounts for 100.00% of the Company's consolidated financial statement total operating income.